As everyone greets the new year, Tesla updated its website according to the Inflation Reduction Act’s (IRA) requirements for the electric vehicle (EV) tax credits.
Most of Tesla’s other models—including the Model X—are eligible for the full tax incentives. The base Model 3 and Long Range variant no longer qualify for the IRA tax credits. The Tesla cars eligible for IRA’s $7,500 tax credit are listed below with their prices.
- Model X Dual Motor AWD – $79,990
- Model 3 Performance – $50,990
- Model Y RWD – $43,990
- Model Y LR – $48,990
- Model Y Performance – $52,490
According to the IRS, customers who wish to avail the $7,500 discount must have the following qualifications:
- Buy an EV for personal use and not for resale
- The new EV must primarily be used in the United States
- The customers’ modified adjusted gross income (AGI) must not exceed:
- $300,000 for married couples filing jointly
- $225,000 for heads of households
- $150,000 for all other filers
Tesla informed customers about changes to the IRA tax credit list of eligible EVs early last year. The IRS implemented some changes that affected some electric vehicle models on sale in the US market.
The most significant changes to the IRA related to EV components sourced from foreign entities of concern (FEOC), which included countries like China, Iran, North Korea, and Russia. Electric vehicles with components from FEOC nations are not eligible for IRA EV tax credits.
The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via X @Writer_01001101.
Elon Musk
Tesla Model 3 wins ‘most economical EV to own’ title in new study
The Tesla Model 3 has captured another crown in a recent study showing the most cost-effective EVs
The Tesla Model 3 recently captured the title of “most economical electric vehicle to own” in a new study performed by research firm Zutobi.
Perhaps one of the biggest and most popular reasons people are switching to EVs is the cost savings. Combining home charging, lower maintenance costs, and tax credits has all enabled consumers to consider EVs as a way to save money on their daily drivers. However, there are some EVs that are more efficient and cost-effective than others.
Tesla police fleet saves nearly half a million in upkeep and repair costs
Zutobi‘s new study shows that EV cost-effectiveness comes at different levels. For example, some cars are simply better than others on a cost-per-mile basis. The study used a simple process to determine which EVs are more cost-effective than others by showing how much it would cost to drive 100 miles.
National averages for energy rates have been used to calculate the cost as they widely vary from state to state.
The Rear-Wheel Drive Tesla Model 3 was listed as the most economical vehicle in the study:
“The standard Tesla Model 3 is the most economical electric vehicle to drive in 2025. With a usable battery capacity of 57.5 kWh and a real-world range of 260 miles, it costs just $3.60 to drive 100 miles. That translates to an impressive 2,781 miles per $100 of electricity—making it the most efficient choice for EV owners nationwide.”
It had an estimated cost of just $3.60 to drive 100 miles.
The Tesla Model 3 Long Range All-Wheel Drive was second, the study showed:
“Next is the Long Range version of the Model 3, which offers extended range and dual-motor all-wheel drive. With a larger 75 kWh battery and 325 miles of range, the cost to drive 100 miles is slightly higher at $3.75, still equating to a strong 2,665 miles per $100.”
This version of the Model 3 had a price of just $3.75 to drive 100 miles.
In third, the BMW i4 eDrive35 surprised us with a cost of just $4.12 to drive 100 miles:
“Rounding out the top three is the BMW i4 eDrive35, with a 67.1 kWh battery and a real-world range of 265 miles. Drivers can expect to pay $4.12 per 100 miles, which still allows for 2,429 miles per $100—a solid choice for those seeking luxury and efficiency.”
Several other Teslas made the list as well. The Model 3 Performance ($4.34 per 100 miles) was sixth and tied with the Volkswagen ID.3 Pure, the Tesla Model S Long Range ($4.35 per 100 miles) was 8th, and the Tesla Model Y Long Range was ninth ($4.36 per 100 miles).
Tesla is shipping a software fix for 2023 Model 3 and Model Y vehicles that could potentially have a power steering issue.
The National Highway Traffic Safety Administration (NHTSA) uses the term “recall” for the issue because, by definition, it is an “unreasonable safety risk or fails to meet minimum safety standards.”
It is worth noting that the NHTSA does recognize that it is a software update on its official website with a new badge that it recently started placing on these types of fixes.
However, the power steering issue is being resolved through an Over-the-Air software update, which will not require physical service from Tesla, and will be fixed through an internet connection.
The issue is impacting an estimated 376,241 Tesla Model 3 and Model Y vehicles operating software prior to 2023.38.4. The NHTSA writes on its website that:
“The printed circuit board for the electronic power steering assist may experience an overstress condition, causing a loss of power steering assist when the vehicle reaches a stop and then accelerates again.”
The agencies 573 report continues:
“By design, if the overstress condition occurs while the vehicle is traveling above 0 MPH, steering efforts will not be affected, and a visual alert will illuminate. Once the vehicle speed reaches 0 MPH, a loss of EPAS may occur, and loss of EPAS will persist when the vehicle is driven above 0 MPH. Manual steering without EPAS remains available to the driver.”
As of January 10, Tesla says it has received 3,012 warranty claims and 570 field reports relating to the issue, but it is not aware of any accidents or deaths due to the problem.
Need accessories for your Tesla? Check out the Teslarati Marketplace:
- https://shop.teslarati.com/collections/tesla-cybertruck-accessories
- https://shop.teslarati.com/collections/tesla-model-y-accessories
- https://shop.teslarati.com/collections/tesla-model-3-accessories
Please email me with questions and comments at joey@teslarati.com. I’d love to chat! You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
A new study from the online lending service marketplace LendingTree has put a spotlight on Tesla’s popularity among car buyers looking for a luxury vehicle. From January through November 2024, the Tesla Model Y and Model 3 received the most loan inquiries from car buyers looking to acquire a luxury vehicle.
The study:
- For its study, LendingTree analyzed over 1 million auto loan inquiries for passenger vehicles from January 1 to November 30, 2024.
- To determine which luxury vehicles were most popular among car shoppers, LendingTree took a luxury vehicle make’s total number of queries and divided it by the total number of luxury vehicle queries during the study’s period.
- Carfax’s “Complete Guide to Luxury Car Brands” was used to determine which car brands were considered luxury. Tesla is included in the list.
The Model Y and Model 3’s results:
- As per LendingTree’s study, Tesla’s two mainstream vehicles attracted the top interest among car buyers looking to acquire a luxury car.
- The Tesla Model Y claimed the top spot in the study, with 6.8% of luxury vehicle loan queries being centered on the best-selling all-electric crossover.
- The Tesla Model 3 followed closely at 5.6%, which is quite impressive considering that the vehicle is a sedan.
- Overall, Tesla was the study’s second most sought-after luxury brand after BMW, though this was partly due to the company’s significantly smaller vehicle lineup.
- BMW captured 16.6% of luxury brand queries in the study, while Tesla captured 15.8%.
- This means that Tesla beat out Mercedes-Benz and Lexus, which captured 12.0% and 11.1% of luxury brand inquiries, respectively.
Why it matters:
- As per LendingTree, a good reason behind the popularity of the Tesla Model Y and Model 3 among luxury car buyers may be the vehicles’ reasonable price.
- Despite Tesla being considered a luxury brand, the Model Y and Model 3 are priced very competitively.
- The 2024 Model Y starts at a reasonable $44,990. The Model 3 is even more budget-friendly, praised by Kelley Blue Book as a “bargain among electric sedans” at its price.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Tesla could face emissions credit tax in Washington
Tesla’s Hollywood Diner is finally getting close to opening
Tesla building apparent Cybercab castings ahead of launch
-
News2 weeks agoI took a Tesla new Model Y Demo Drive – Here’s what I learned
-
News2 weeks agoTesla’s Giga Texas vehicles now drive themselves to outbound lot
-
News2 weeks agoTesla’s ecological paradise near Giga Texas takes shape
-
News2 weeks agoElon Musk and top Trump trade advisor Peter Navarro lock horns over tariffs
-
News2 weeks agoTesla adding new safety features for improved emergency detection
-
News2 weeks agoAnti-Musk protester temporarily arrested in Berlin for poster with Nazi salute
-
News2 weeks agoFormer Tesla executive aims to raise $50 million for energy startup
-
News2 weeks agoNIO Hong Kong shares rise as CATL eyes stake